Where Will The US Stock Market Crash End?

As the carnage continues with stocks now ignoring anything the Fed throws at them — and the Fed has pretty well thrown everything it has used in the past and is now moving into bailout mode — where is the US stock market crash likely to to stop falling? So far, it’s been limit-down all the way.

Before posing “The Fed is Dead” later today, I wanted to rush this out because I can get it published quickly:

The above graph shows two reasonable targets that I would suggest.

Three Stages Of Bull And Bear Markets

By Mark J Lundeen – Re-Blogged From Gold Eagle

What a wild week; I’m overwhelmed!  In my articles I usually find a narrative theme with which to insert my graphics in.  But this week the only theme that comes to mind is what an awful week it was – just awful.  Come to think of it, that’s actually a pretty good theme to use for a week like this.  So all hands standby for heavy rolls to both the port and starboard, as here’s the Bear’s Eye View of the Dow Jones.

Every day this week the Dow Jones saw a 2% day, a day of extreme-market volatility and almost broke below its BEV -30% line on Thursday.  It’s hard to believe, but the Dow Jones saw its last BEV Zero (all-time high) just a month ago (twenty-two NYSE trading sessions ago) on February 12th.  Since then the bottom has fallen out of the stock market as painfully evident in the BEV chart below.

Starting next week, I’m recalibrating my Dow Jones Corrections based on something more than just a 30% decline.  Thursday saw the Dow Jones’ BEV value close at -28.26%.

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Stocks Crash Into Bear Market Faster Than 1929!

By David Haggith – Re-Blogged From Gold Eagle

The bear roared today, ripping the ears off everyone, as the Dow and Russel 2000 both landed more than 20% below their last peak. Their 19-session rampage landed a record as the, steepest, fastest downhill bear run in the history of the US stock market.

The market’s waterfall run over the cliffs now looks like El Capitan.

A Week Of Stock Market Turmoil With More To Come

By Mark J Lundeen – Re-Blogged From Gold Eagle

Can you believe it? After a week where the Dow Jones saw four days of extreme market volatility (Dow Jones 2% days), and the NYSE saw two days of extreme market breadth (NYSE 70% A-D days), the Dow Jones closed UP 455 points from last week’s close. After all that the Dow Jones in its Bear’s Eye View Chart below is little changed from last week.

Looking at the Dow Jones in its daily bars (next), it’s very apparent how after Friday, February 21st someone (Mr Bear?) changed the rules. From October 1st to February 21st average daily volatility for the Dow Jones was only 0.50%. In the past two weeks it has leapt to 3.01%. And though the Dow Jones closed up 455 for the week, looking at the chart below one thing comes to my mind – Mr Bear is once again hard at work.

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Big US Stocks’ Q4’19 Fundamentals

By Adam Hamilton – Re-Blogged From Gold Eagle

Stock-market volatility has exploded on COVID-19 fears, shattering the Fed’s QE4-fueled levitation.  The resulting stunning sentiment shift has left investors and speculators wondering where these wild markets are heading.  This is an important time to check the latest fundamentals underlying the big US stocks that dominate market action.  They just finished reporting their Q4’19 results, which illuminate their valuations.

Recent weeks’ stock-market swings have been huge, driven by mounting worries about the economic fallout from the COVID-19 pandemic.  For 6 weeks I’ve covered this virus’s daily progression in depth in our subscription newsletters, including many troubling reports out of China that the media ignored.  Before this selloff, I recommended long-volatility and short-stock-market trades that surged to big realized gains up to +145%.

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Stock Market Overmedicated on FedMed, Patient Goes into Cardiac Arrest

By David Haggith – Re-Blogged From Silver Phoenix

The Federal Reserve on Tuesday gave the market a double-dose of exactly what it thought the market needed, and the market just about died! On the theory that, if a little is good, more is better, the Fed gave a double cut of interest. It did not go as planned.

At first, the medicine hit like nitroglycerin tablets, and the patient’s heart leaped. You can see how instantly the patient bolted up on the operating table in the graph, but the double dose the Fed administered was too much, and by the end of the day the patient’s vital signs were down 785 points.

Simultaneously, bond yields busted through a major psychological barrier with the 10-year yield going deep into a coma below the 1% near-death zone to rest at 0.97%!

Mr Bear Took His Pound Of Flesh From The Stock Market This Week

By Mark J Lundeen – Re-Blogged From Gold Eagle

At last week’s close, with the Dow Jones’ BEV value at -1.89%, I said I’d remain long-term bullish as long as the Dow Jones stayed above its BEV -7.5% line, or even if it remained in single-digits BEV values.  As it turned out I could only remain long-term bullish until Wednesday of this week with the Dow Jones closing at a BEV of -8.78%.  Thursday the Dow Jones closed with a BEV of -12.81%, and Mr Bear’s slaughter of the innocents on Wall Street continued on Friday, closing the week with the Dow Jones seeing a BEV of -14.02%.

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